What is shareholder activism and why does it matter for investors?

Shareholder activism occurs when investors use their ownership stakes to influence company decisions and push for strategic changes. Activist investors like Starboard Value buy significant stakes in companies and then advocate for improvements in operations, governance, or strategy. This matters because it often leads to increased demand for consulting services, advisory firms, and enterprise software that help companies implement these changes, creating investment opportunities in those sectors.

What types of companies benefit from corporate transformation trends?

Several types of companies benefit when corporations undergo strategic changes: management consulting firms that provide operational efficiency advice, executive search firms that help find new leadership, enterprise software companies offering analytics and performance management tools, and financial advisory firms that guide strategic restructuring. These companies provide the expertise and technology needed during corporate transformations.

What does 'potential profit %' mean in stock analysis?

Potential profit percentage represents analysts' estimates of how much a stock's price could increase over a specific time period, typically 12 months. It's calculated by comparing the current stock price to analysts' target prices. However, this is a projection based on current analysis and market conditions - actual returns may vary significantly and stocks can also decline in value.

Why might consulting and advisory firms see increased demand during activist campaigns?

When activist investors push for changes, companies often need external expertise to implement improvements quickly and effectively. Consulting firms provide specialised knowledge in areas like operational efficiency, cost reduction, and strategic planning. Advisory firms help with governance improvements and capital allocation strategies. This external expertise becomes essential when companies face pressure to demonstrate rapid improvements to shareholders.

19 handpicked stocks

The Activist Catalyst: Riding The Wave Of Corporate Change

Q: How does Starboard Value's increased stake in Salesforce create broader investment opportunities?

When activist investors increase their stakes, it signals confidence that their proposed changes will create value. This creates a ripple effect where companies either respond to activist pressure or proactively seek to optimise their operations. This increased activity drives demand for consulting firms, advisory services, and enterprise software providers that specialise in corporate transformation and operational efficiency.

Activist investor Starboard Value has significantly increased its stake in Salesforce, signaling renewed confidence in its push for strategic changes. This trend of shareholder activism creates opportunities for companies specializing in corporate efficiency and performance management.

Han Tan | Market Analyst

Published on August 15

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Salesforce Inc

CRM

Current price

$199.28

The primary target of Starboard Value's increased activism, representing the epicentre of this corporate transformation theme.

HACKETT GROUP INC/THE

HCKT

Current price

$14.30

A consulting firm positioned to benefit from increased demand for corporate advisory services during activist-driven transformations.

Insperity Inc

NSP

Current price

$20.55

Provides strategic consulting services that become essential when companies face pressure to improve operational efficiency.

ManpowerGroup Inc.

MAN

Current price

$26.41

Korn/Ferry International

KFY

Current price

$61.52

Franklin Covey Co

Current price

$13.02

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Your Basket's Financial Footprint

Market capitalisation breakdown for the basket named 'The Activist Catalyst: Riding The Wave Of Corporate Change'.

Key Takeaways for Investors:

Large-cap dominance tends to reduce volatility, offering more stable returns and closer market tracking.
Suitable as a core holding for diversification, not as a high‑risk speculative position.
Expect steadier, long‑term appreciation rather than rapid, short‑term gains.

Total Market Cap

CRM: $250.77B
HCKT: $527.38M
NSP: $1.80B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+79.69%

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About This Group of Stocks

Our Expert Thinking

Shareholder activism is creating powerful ripple effects across corporate America. When activist investors like Starboard Value push for strategic changes, it creates demand for consulting firms, advisory services, and enterprise software that help companies optimise operations and unlock value.

What You Need to Know

This group focuses on companies that benefit when corporations face pressure to improve performance. These include consulting firms specialising in operational efficiency, enterprise software providers offering analytics tools, and advisory companies that guide strategic transformations.

Why These Stocks

These stocks were handpicked by professional analysts based on their strategic positioning in the corporate transformation ecosystem. They represent companies that provide the expertise and technology needed when businesses respond to activist pressure or proactively seek to optimise their operations.

Group Performance Snapshot

79.69%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 79.69% over the next year.

15 of 18

Stocks Rated Buy by Analysts

15 of 18 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🎯

Activist Momentum Building

Starboard Value's increased Salesforce stake signals renewed confidence in activist-driven change. This creates ripple effects across consulting and advisory firms that help companies respond to such pressure.

⚡

Corporate Transformation Surge

Companies are increasingly seeking operational efficiency and strategic improvements. This trend drives demand for the consulting firms and enterprise software providers in this carefully selected group.

💡

Expert-Backed Strategy

These stocks represent the infrastructure of corporate change - from advisory services to performance analytics. Professional analysts identified them as key beneficiaries of the activist investment wave.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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The Activist Catalyst: Riding The Wave Of Corporate Change

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks